Chinese handset maker Xiaomi fined for false advertising in Taiwan

07/31/2014 02:27 PM
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(From Xiaomi
(From Xiaomi's website)

Taipei, July 31 (CNA) The Taiwan branch of Chinese smartphone maker Xiaomi Corp. was fined NT$600,000 (US$19,980) by Taiwan's Fair Trade Commission (FTC) Thursday for false advertising regarding its low-cost Redmi phones in this country.

The FTC said in an online statement that Xiaomi Taiwan claimed that it sold out a batch of 10,000 Redmi phones online in Taiwan within nine minutes and 50 seconds Dec. 9 last year, followed by another two rounds of sales Dec. 16 and Dec. 23 in which it sold out 10,000 units within 68 seconds and 8,000 units within 25 seconds, respectively.

The commission found, however, that Xiaomi actually sold 9,339 Redmi phones Dec. 9, 9,492 units Dec. 16 and 7,389 units Dec. 23, making its claims a violation of the Fair Trade Act governing false or misleading representations in terms of product quantity.

The FTC said Xiaomi Taiwan's decision to close the three rounds of online sales with some Redmi phones still in inventory also curtailed local consumers' chance to purchase the devices.

A representative of Xiaomi Taiwan told CNA that the company will seek administrative litigation on the case, with details to be announced in a press release later in the day.

(By Jeffrey Wu)ENDITEM/J

Related:●July 31: Chinese handset maker Xiaomi apologizes for misleading Taiwan buyers

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